Sales tax classification of dal as a form of gram under commercial parlance rejected a separate tax treatment.

An article on sales tax classification explains that, in common and commercial parlance, "all forms of gram" includes dal because splitting gram does not create a new commercial commodity. The analysis treats dal as a broken form of gram, distinguishes the paddy-to-rice analogy because no new identity emerges here, and notes that earlier authority on gram converted into dal or dana remains applicable. It also regards authority on blackgram dal as consistent with this approach. On that basis, dal falls within the notification, and the additional tax demand based on treating it as outside gram is not sustainable.

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Issues: Whether dal is comprehended within the expression "all forms of gram" in the relevant sales tax notification, so as to be liable to purchase tax and not sales tax.

Analysis: The expression "form" was construed in its ordinary and commercial sense, not as being confined to varieties or colours of gram. The reasoning accepted that dal is only a broken form of gram and does not become a new commodity merely because the grain is split. The earlier view that gram converted into dal or dana retains its identity was treated as still holding the field, while the paddy-to-rice analogy was distinguished as involving a change in identity not present here. The later authority concerning blackgram converted into dal was also seen as supportive of the view that dal and gram belong to the same family of goods.

Conclusion: Dal falls within the ambit of "all forms of gram" and the dealer was not liable to the additional sales tax demand on the footing adopted by the assessing authority. The questions were answered against the Revenue and in favour of the dealer.

Ratio Decidendi: Where a notification taxes "all forms" of a commodity, a broken or split form of the same commodity, which does not acquire a new commercial identity, remains within that description in common and commercial parlance.

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